{"id":199444,"date":"2009-10-21T00:00:00","date_gmt":"2009-10-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-ravindra-associates-vs-union-of-india-on-21-october-2009"},"modified":"2016-03-17T23:56:58","modified_gmt":"2016-03-17T18:26:58","slug":"ms-ravindra-associates-vs-union-of-india-on-21-october-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-ravindra-associates-vs-union-of-india-on-21-october-2009","title":{"rendered":"M\/S. Ravindra & Associates vs Union Of India on 21 October, 2009"},"content":{"rendered":"
Supreme Court of India<\/div>\n
M\/S. Ravindra & Associates vs Union Of India on 21 October, 2009<\/div>\n
Author: …………………J.<\/div>\n
Bench: Markandey Katju, Asok Kumar Ganguly<\/div>\n
                                               1\n\n                                                               REPORTABLE\n                    IN THE SUPREME COURT OF INDIA\n                     CIVIL APPELLATE JURISDICTION\n\n                  CIVIL APPEAL    NO. 2726       OF 2004\n\nRavindra & Associates                           ....     Appellant\n\n                                  Versus\n\nUnion of India                                  ....     Respondent\n\n                                            O R D E R\n<\/pre>\n
1.        Heard learned counsel for the parties.\n<\/p>\n
2.        This appeal by special leave has been filed against<\/p>\n
the judgment and order dated 15.1.2003 of the High Court of<\/p>\n
Kerala at Ernakulam whereby the High Court has allowed the<\/p>\n
appeal    filed   by   the   respondent     herein   against   the   order<\/p>\n
dated 9.10.1996 of the Principal Sub Judge, Kochi.<\/p>\n
3.        It appears that the appellant was awarded a contract<\/p>\n
for construction of married accommodation for petty officers<\/p>\n
of the Navy at Rameswaram, Kochi.              The value of the work<\/p>\n
awarded    was Rs. 5,44,47,087\/-.          The work which commenced on<\/p>\n
24.12.1990 had to be completed by 23.6.1993 and admittedly<\/p>\n
it was completed by the said date.\n<\/p>\n
4.        Disputes arose between the parties and the parties<\/p>\n
invoked    the    arbitration    clause     provided    in   the   General<\/p>\n
Conditions of Contract.          The claimant-appellant made claims<\/p>\n
under 25 heads.        The arbitrator awarded to the claimant a
\n                                  2<\/span><\/p>\n
sum of Rs. 70,94,265\/- and allowed simple interest at the<\/p>\n
rate of 18% from the date of accrual for cause of action<\/p>\n
till date of reference, from the date of reference till date<\/p>\n
of award and from the date of award till the date of decree<\/p>\n
or date of payment whichever is earlier.              An application by<\/p>\n
the appellant-claimant was filed before the Principal Sub<\/p>\n
Judge, Kochi to make the award a Rule of the Court.                  The<\/p>\n
respondent-Union    of   India   also   filed    an    application   for<\/p>\n
setting aside the award of the arbitrator.               The Sub-Judge<\/p>\n
allowed the application of the appellant and made it a Rule<\/p>\n
of the Court, but awarded 12% interest on the amount awarded<\/p>\n
from the date of decree till realization and dismissed the<\/p>\n
application   of   the   respondent-Union   of    India.      Aggrieved<\/p>\n
against the order dated 9.10.1996 of the Sub-Judge, Kochi<\/p>\n
the respondent herein preferred an appeal before the High<\/p>\n
Court which has been allowed by the impugned judgment and<\/p>\n
order.   Hence, the present appeal.\n<\/p>\n
5.       In our opinion, the High Court wrongly interfered<\/p>\n
with the arbitration award and practically acted as a Court<\/p>\n
of Appeal, which it could not do (See : State of Rajasthan<\/p>\n
Vs. Puri Construction Co. Ltd. (1994) 6 SCC 485; Trustees of<\/p>\n
Port of Madras Vs. Engineering Construction Corporation Ltd.<\/p>\n
(1995) 5 SCC 531; EOC India Ltd. Vs. Bhagwati Oxygen Ltd.
\n                                     3<\/span><\/p>\n
(2007) 9 SCC 503 and G. Ram Chandra Reddy & Company Vs.<\/p>\n
Union of India & Anr. (2009) 6 SCC 414).\n<\/p>\n
6.        As regards the allegation that while in the contract<\/p>\n
mixture provided for in the contract is M\/15, but in fact,<\/p>\n
M\/20 was used, it has been held by the arbitrator that this<\/p>\n
was   done     at   the    insistence     of   the   Department.     The<\/p>\n
arbitrator     also   held   that   the   relevant   drawing   for   M\/15<\/p>\n
mixture and the drawing relied upon by the respondent did<\/p>\n
not find place in the list of drawings forming part of the<\/p>\n
tender documents.         Hence, in our opinion, the High Court has<\/p>\n
wrongly interfered with the findings of the arbitrator as<\/p>\n
regards claim Nos. 1 and 9.\n<\/p>\n
7.        As regards claim No. 10(b) relating to payment of<\/p>\n
over-time to labour it has been contended by the learned<\/p>\n
counsel for the appellant that there was a delay in supply<\/p>\n
of stores by the respondent and therefore the labour had to<\/p>\n
be retained for a longer period of time than envisaged under<\/p>\n
the contract and hence overtime charges had to be paid to<\/p>\n
the labour.\n<\/p>\n
8.        In this connection, the learned counsel appearing<\/p>\n
for the      respondent has     relied upon     the decision    of this<\/p>\n
Court in the case of Ramnath International Construction (P)<\/p>\n
Ltd. Vs. Union of India (2007) 2 SCC 453.                 We have gone
\n                                            4<\/span><\/p>\n
through the said decision.              In our opinion that decision has<\/p>\n
no application to the case at hand as in that case the<\/p>\n
contractor        sought    and    obtained           extension        of    time      for<\/p>\n
execution    of     the    contract         whereas     in    the      present        case<\/p>\n
neither   extension        of   time        was   sought     for,      nor    in     fact,<\/p>\n
granted     for     completion         of       the   contract.             Hence,     the<\/p>\n
aforesaid decision is clearly distinguishable. Clause 11(c)<\/p>\n
of the General Conditions of Contract has no application in<\/p>\n
this case at all.\n<\/p>\n
9.        As regards Claim No. 12 relating to difference in<\/p>\n
price of wood frames for doors and windows, it is stated<\/p>\n
that no doubt the contract provided for teak wood but it was<\/p>\n
changed to second class hard-wood at the insistence of the<\/p>\n
Department.        The High Court has in this regard relied upon<\/p>\n
the   decision      of    the   Board       of    Officers    who      has    made     its<\/p>\n
assessment    by     relying      upon       Clause     62(G)     of    the     General<\/p>\n
Conditions of Contract which provided that the decision of<\/p>\n
the Garrison Engineer would be final unless it was set aside<\/p>\n
in appeal.        In the present case, the price was not fixed by<\/p>\n
the   Garrison      Engineer      at    all.          Moreover,     the       Board    of<\/p>\n
Officers had made an inquiry in the matter after three years<\/p>\n
and the arbitrator, in our opinion, rightly held that such<\/p>\n
an inquiry was of no consequence.\n<\/p>\n
                                        5<\/span><\/p>\n
10.      As    regards        Claims    No.    20    and    23     relating   to<\/p>\n
escalation    in     prices    of     material,      in    our   opinion,     the<\/p>\n
arbitrator has given his findings of fact and the High Court<\/p>\n
misread Clause 18 of the Special Conditions of Contract.<\/p>\n
11.      For the reasons given above, we are of the opinion<\/p>\n
that   the    High    Court     has     wrongly      interfered      with     the<\/p>\n
arbitration award.        Accordingly, the appeal is allowed and<\/p>\n
the impugned judgment and order is set aside.<\/p>\n
12.      We    may    also     point    out   that    in    para    12   of   the<\/p>\n
judgment there appears to be a typographical error inasmuch<\/p>\n
as the Principal Sub-Judge Kochi has reduced the interest<\/p>\n
from 18% to 12% and not 10%, as wrongly recorded in the<\/p>\n
impugned judgment.       We make it clear that the appellant is<\/p>\n
entitled to interest @ 12%, as awarded by the Principal Sub<\/p>\n
Judge, Kochi.\n<\/p>\n
         Appeal allowed.         No order as to the costs.\n\n\n\n                                               .....................J.\n                                              (MARKANDEY KATJU)\n\n\n\n                                              .....................J.\n                                              (ASOK KUMAR GANGULY)\n  NEW DELHI;\n  OCTOBER 21, 2009\n<\/pre>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India M\/S. Ravindra & Associates vs Union Of India on 21 October, 2009 Author: …………………J. Bench: Markandey Katju, Asok Kumar Ganguly 1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 2726 OF 2004 Ravindra & Associates …. Appellant Versus Union of India …. Respondent O R D […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-199444","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nM\/S. 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